NCERT Solutions for Class 12 micro-economics covers all the questions given in the NCERT book. You can study and download these question and their solutions free from this page. These solutions are solved by our specialists at SaralStudy.com, that will assist all the students of respective boards, including CBSE, who follows NCERT; with tackling all the questions easily. We give chapter wise complete solutions for your straightforwardness.
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Chapter 1 Introduction to Micro Economics
Economy refers to the nature and level of economics activities in an area. It shows how the people of the concerned area earn their living. (a) market economies are those economies, in which economic activities are left to the free play of the market forces. (b) centrally planned economies are those economies where the course of economic activities is dictated or decided by some central authority or by the government. (c) Mixed economies share the characteristics of both market and centrally planned economies. The basic economic activities of life are: production, exchange and consumption of goods and services are among the basic economic activities of life. Every society must decide on how to use its scarce resources. Hence, the allocation of scarce resources and distribution of the final goods and services are the final goods and services are the central problems of any economy. In a centrally planned economy, the government or the central authority plans all the important decisions regarding production, exchange and consumption of goods and services are made by the government. It is the value of a factor in its next best alternative use. It shows different combinations of two goods, which can be produced with given resources and technology.
- Chapter 2 Theory of Consumer Behaviour
- Chapter 3 Production and Costs
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Chapter 4 The Theory of the Firm under Perfect Competition
A market in which we find perfect competition between a large number of buyers and a large number of sellers of a homogeneous product and uniform price is called a perfect competition market. A firm produces and sells a certain amount of a good. It is the difference between revenue and cost. Break even for a firm occurs when it is able to cover its all costs of production. It occurs when a firm is just able to cover its variable costs increasing the loss of fixed cost of production. A producer is said to be in equilibrium when he maximizes his profit or minimizes his losses. It means the amount of a commodity that firms are able and willing to offer for sale in the market in a given period of time and at a given price. It means the amount of a commodity that firms are able and willing to offer for sale in the market in a given period of time and at a given price. Tabular statements of relationship between price and supply of commodities is called supply schedule. Graphical presentation of relationship between price and supply of a commodity is called supply curve. The market supply curve for a commodity shows the relationship between the price of a given commodity and quantity sellers are inclined to sell. It is a measure of the degree of responsiveness of quantity supplied to changes in the commodity own prices.
- Chapter 5 Market Equilibrium
- Chapter 6 Non-competitive Markets
Popular Questions of Class 12 Micro Economics
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What is the supply curve of a firm in the long run?
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The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm’s supply curve is 0.5. Find the initial and final output levels of the firm.
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A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increases to Rs 15 and the firm now earns a revenue of Rs 150. What is the price elasticity of the firm’s supply curve?
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Distinguish between a centrally planned economy and a market economy.
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How does the imposition of a unit tax affect the supply curve of a firm?
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A consumer wants to consume two goods. The prices of the two goods are Rs 4
and Rs 5 respectively. The consumer’s income is Rs 20.
(i) Write down the equation of the budget line.
(ii) How much of good 1 can the consumer consume if she spends her entire
income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on
that good?
(iv) What is the slope of the budget line?
Questions 5, 6 and 7 are related to question 4. - Q:-
What is the relation between market price and average revenue of a price-taking firm?
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What is budget line?
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Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
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Suppose there are 20 consumers for a good and they have identical demand functions:
d(p)=10–3pd(p)=10–3p for any price less than or equal to 103103 and d1(p)=0d1(p)=0 at any price greater than 103.
Recently Viewed Questions of Class 12 Micro Economics
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Can there be a positive level of output that a profit-maximising firm produces in a competitive market at which market price is not equal to marginal cost? Give an explanation.
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Explain the concept of a production function
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What do you mean by the budget set of a consumer?
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What would be the shape of the demand curve so that the total revenue curve is?
(a) A positively sloped straight line passing through the origin?
(b) A horizontal line?
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When does a production function satisfy decreasing returns to scale?
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At which point does the SMC curve intersect the SAC curve? Give a reason in support of your answer.
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Can you think of any commodity on which the price ceiling is imposed in India? What may be the consequence of price-ceiling?
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Explain how price is determined in a perfectly competitive market with a fixed number of firms.
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Will the monopolist firm continue to produce in the short run if a loss is incurred at the best short run level of output?
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What is the total product of input?